FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Jan 25, 2003

 

The interbank market continues the prevailing downward trend and due to surplus liquidity in the system rates remained at the rock bottom levels throughout the week. Week started with overnight rates quoted in the range of 0.75% and 1.25%, but as the week progressed overnight rates further dipped and funds in overnight changed hands as low as 0.25%. Contrary to market expectation the heavy out flow

 

 

of around Rs. 28.00 billion did not put any pressure on the rates and market remained at the lower end. Due to prevailing liquidity, term rates also came under pressure and fell across the board. Major activity was confined in one and two weeks, trades in the early part of the week was witnessed around 2.00% and 1.75% respectively, later rates further slid and deals were struck around 0.75% and 1.50% in the respected tenors. One month saw a fall of around 100 p.bs and trades were struck as low as 2.00%. Rates in three and six months also eased and offers in the respected tenors were quoted around 2.25% and 2.40% respectively. This ease in rates cause heavy buying pressure in T-bills and trades in six and one year T-bills were witnessed as low as 2.25% and 2.60%. The SBP conducted T-bill auction in 3 months and one year tenors on 22nd January, 2003 and accepted total amount of around Rs.28.0 billion against pre-auction target of Rs.30.0 billion. As expected adjustment of around 49 to 50 b.ps were seen in the cut-off rates of 3 months and one year T-bills.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.70

03.70

07.00%

2 Year

03.10

04.10

07.75%

3 Year

03.60

04.30

09.00%

4 Year

03.60

04.40

09.50%

5 Year

04.00

04.60

10.00%

10 Year

05.05

05.40

11.25%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jan 22 T-Bill 03 mth. Jan 22 Jan 23
Jan 22 T-Bill 06 mth. Jan 22 Jan 23

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.30,000 Mln

Rs.83,647.6 Mln

Rs.28,555.6 Mln

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

09 Jan 

39,330 Mln

T-Bill

23 Jan

15,800 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.35

01.00

00.75

1 Week

01.25

01.75

02.75

1 Month

02.00

03.05

04.90

3 Month

02.15

03.30

05.65

6 Month

02.30

03.40

06.00

1 Year

02.55

03.60

06.50

 

 

 


 

TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

02.40

03.65

05.35

2 Month

02.25

03.35

05.35

3 Month

02.25

03.30

05.70

4 Month

02.30

03.35

05.80

5 Month

02.35

03.35

05.90